WHY FILE A MECHANICS LIEN TODAY?
We often are asked why we believe it is so important to file a mechanics lien. The short answer is that filing a mechanics lien protects your hard earned money by securitizing it. A mechanics lien is a valuable statutory tool that you can use to help your company keep itself from losing out on payment for work that it performed.
Don't Miss Out on the Valuable Effects Provides by a Mechanics Lien Claim
Why file a mechanics lien today? Now that's a question that's easy to answer. Mechanics liens are valuable tools that help you to ensure that payments not made are at least secured by the property on which you performed work or provided materials. But you'll need to make sure you comply with some regulations first so you can make sure your lien is enforceable and effective for its intended purpose: to get you paid.
LienItNow Mechanics Lien Tip #1: file early - preferably soon after the money you're owed is overdue.
Mechanics liens have to be filed within a limited time period. This time period varies by state, so making sure that you file in time is crucial. In some states, you may have as little as 30 days from your last date of work to file a mechanics lien, but in others you may have a year from your last date of work to file. But if you wait a year, there's a big likelihood that that property will have been sold, transferred, or refinanced, which limits your rights to the property and the security it provides.
LienItNow Mechanics Lien Tip #2: make sure your mechanics lien includes the maximum amount for which you are allowed to file, and no more.
Generally speaking, your mechanics lien has a maximum value set by statute. This value is usually the value of materials or services provided to the project, with the maximum amount being the value of your contract, plus change order work. In some cases, interest, attorneys fees, even the cost of filing the mechanics lien can be added to the value of the mechanics lien. Make sure that when you file a mechanics lien, you know whether you can add additional costs to the amount of the mechanics lien. If you're not sure, take a look at our state specific reference desk by clicking on the FAQ tab.
LienItNow Mechanics Lien Tip #3: enforce your mechanics lien claim before it expires.
All mechanics lien claims come with expiration dates. In New York and Kentucky, you have the ability to file for an extension of a mechanics lien claim, but other states don't allow extensions. Before the mechanics lien expires, you'll need to take action to enforce it. This means filing a lawsuit to foreclose on the mechanics lien claim. You'll need a lawyer for this, but we can tell you when your claim expires: just look in LienItNow.com's FAQ Section to find out what your state requires.